Coal mine compensation apportionment can keep income-tax treatment open until final court determination of available amount.

Compensation for coal mines could not be finally quantified until the statutory apportionment process under the Coal Mines Nationalisation Act, 1973 was completed by the Commissioner of Claims and the District Court. Because the assessee's terminal loss under section 32(1)(iii) of the Income-tax Act, 1961, or taxable profit under section 41(2) depended on the final amount available after apportionment, the estimated figure accepted by the appellate authority was not conclusive. The Tribunal was therefore justified in leaving the income-tax issue open and remanding the matter to the Income-tax Officer after the District Court's award.

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Issues: Whether the Tribunal was justified in law in sending the case back to the Income-tax Officer pending the District Court's award on apportionment of compensation under the Coal Mines Nationalisation Act, 1973.

Analysis: The compensation payable for the coal mines could not be determined finally until the Commissioner of Claims and the District Court completed the statutory process of identifying the competing claims and apportioning the balance between the owner and the contractor under section 26(5) of the Coal Mines Nationalisation Act, 1973. The question whether the assessee would ultimately suffer terminal loss under section 32(1)(iii) of the Income-tax Act, 1961, or earn profit chargeable under section 41(2) of that Act depended on the amount finally available after such apportionment. The estimated figure adopted by the appellate authority was therefore not conclusive, and the Tribunal was justified in keeping the matter open until the competent court determined the apportionment.

Conclusion: The Tribunal was justified in setting aside the earlier orders and remanding the matter to the Income-tax Officer after the District Court's award on apportionment.

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